FTX’s bankruptcy estate has confirmed that a second round of reimbursements will begin on May 30.
More than $5 billion will be released to eligible creditors in this phase.
Payments will be routed through BitGo or Kraken, with most transfers expected to clear within one to three business days.
The new tranche follows an initial February distribution that covered claims under $50,000.
This time, the estate is expanding coverage to much larger balances, signaling steady progress in the sprawling restructuring effort.
Eligibility and Requirements
FTX has told creditors they must complete Know-Your-Customer checks, submit U.S. tax forms, and finish onboarding through the exchange portal before money can be sent.
Missing steps could delay or even forfeit a payout, so the estate has urged claimants to review instructions carefully.
Once verified, account holders will see funds land directly in their chosen provider account rather than in cash from FTX itself.
Exchange Involvement
Using BitGo and Kraken allows the estate to avoid building a bespoke payment rail while giving customers familiar platforms and custody options.
Both companies have signaled they can process the high volume of transfers without disrupting regular operations.
Industry analysts say working with established exchanges also reduces legal risk, as regulators already supervise their compliance protocols.
Claim Categories and Rates
The estate has mapped out different reimbursement rates for each claim class.
Dotcom Customer Entitlement Claims will receive 72 percent of allowed amounts.
U.S. Customer Entitlement Claims are set for 54 percent.
General Unsecured and Digital Asset Loan Claims will each get 61 percent.
Convenience Claims—balances of $50,000 or less—remain at 120 percent, preserving the estate’s earlier commitment to small creditors.
CEO Commentary
“These first non-convenience class distributions are an important milestone for FTX,” said FTX CEO.
“The scope and magnitude of the FTX creditor base make this an unprecedented distribution process, and today’s announcement reflects the outstanding success of the recovery and coordination efforts of our team of professionals.”
Context of Bankruptcy
FTX collapsed in November 2022 amid an $8 billion hole in client accounts, triggering one of the largest failures in crypto history.
Since then, restructuring chief John Ray III has marshaled roughly $11.4 billion in assets for repayment.
Payouts, however, are calculated at market prices as of the bankruptcy filing, meaning many holders will receive less than current values of their coins.
Recovery Prospects
Creditors have voiced mixed reactions: some welcome faster cash, while others lament missed appreciation during the bull market.
Still, observers say reaching a second distribution within 18 months is comparatively swift for a bankruptcy of this scale.
FTX’s estate continues to pursue clawbacks and asset sales that could boost future recovery percentages.
What Happens Next
If this round runs smoothly, advisers expect a third and possibly final distribution later this year.
The estate also plans to file an updated reorganization proposal, outlining how any residual assets—such as stakes in startups—might be liquidated for creditors.
For now, the focus is on meeting the May 30 deadline and demonstrating that the long-promised repayments are arriving on schedule.